FNG Holding close to bankruptcy

Ellos - FNG
Shutterstock.com

FNG Holding is having serious financial difficulties. If the listed company does not find new resources, bankruptcy seems inevitable.

 

On the brink of collapsing

According to De Standaard, a Flemish newspaper, FNG Holding is on the verge of collapsing. Since the bankruptcy of its store activities, the company only carries the Swedish e-commerce player Ellos. It seems that the company doesn't even have operating funds anymore and will not be able to cover the most necessary expenses. For example, the annual accounts have yet been published, because there is no money to pay the auditor. The company's website is also no longer maintained, and the company has lost its headquarters in Mechelen, according to De Standaard.

 

The retail holding company only sees two possible scenarios: taking out a new loan or filing for bankruptcy. Given the situation in which the company finds itself, new financing would only be possible at a high-interest rate. The second option, to file for bankruptcy, will depend on negotiations with investment fund Nordic Capital, the previous owner of Ellos. FNG has not yet paid the full amount for the acquisition. Nonetheless, the investment fund is said not to want to make too many compromises to reach a solution.